In response to the baseless comments from Senator Chuck McIlhinney in the Morning Call article:
HB1196, which would allow PA beer distributors to sell 6 packs, single bottles, and growlers, has a little know provision that could force small “D” beer distributors, like Cascario’s, out of business in favor of the large “ID” distributors by essentially creating a state mandated monopoly. Bars and restaurants would be required to purchase beer based on geographic location. My business, Cascario’s Distributors is in Northampton County, but we’re close to Monroe County and half my business is wholesale accounts in Monroe County. These accounts would be forced to buy beer elsewhere, despite a long term relationship with Cascario’s.
- · We do not approach other distributors’ accounts. We will service customers who approach us first.
- · Years ago IDs, who I’m required to purchase from by law, didn’t deliver to bars/restaurants in more rural areas like mine. When they started delivering directly, they certainly didn’t ask my permission when they took some of my accounts.
- · Bars/restaurants CHOOSE us because of our service and/or because they are unhappy with their previous supplier.
- · We have never offered special pricing to any account, regardless of location or what they buy, i.e. we do not require a new release or overstock be purchased.
- · We provide multiple deliveries per week, same day deliveries, and Saturday deliveries, all without a delivery charge. These services are important to our wholesale customers, and aren’t usually provided by the bigger IDs.
- · We sell all products. This provision forces bars/restaurants to purchase from multiple suppliers.
- · This provision takes away a free open market. The IDs can offer better prices because we buy from them and sell to bars and restaurants. However not all do so.
- · Many legislators were not even aware of the ramifications of this revision to what was touted as a 6 pack law. This bill requires a small fix in wording to preserve the intent without hurting small businesses.
- · If we’re forced to close, it will also affect our loyal retail customers, who would have to buy elsewhere likely with less selections and higher prices.
- · Cascario’s is a 4th generation family business that has been supporting the local community for 70 years. We have adapted as liquor laws have changed. It’s one thing to lose a business due to poor business practices. It is entirely different to lose my business through no fault of my own, that is, to be legislated out of business.
- · Why does Sen. Chuck McIlhinney, who represents Bucks County, reference Cascario’s which isn’t even in his district? Why is he so concerned about what is happening in Northampton and Monroe counties? Where did he get his information, which is blatantly incorrect?
o Why does McIlhinney, in his own words, feel that the multi-million dollar ID’s (who get pricing directly from the breweries) cannot compete with the small distributors like Cascario’s (who are legally required to purchase from designated IDs) without a state enforced monopoly?
We hope our loyal customers will continue to patronize Cascario’s as we attempt to get this situation resolved. We greatly appreciate your continued business. When you see your state legislators at the polls Tuesday, please express your concern with HB1196. THE REVISION FAVORS BIG BUSINESS TO THE DETRIMENT OF SMALL BUSINESSES like Cascario’s.
The Full Story of HB 1196: Cascario's Beverage is in serious danger if this bill passes
Recently, HB 1196 was passed by both the PA Senate and the House of Representatives and sent to the Governor to be signed into law. While this bill is being championed as a win for small business, there is a significant and glossed over downside, located on pages 27 and 28, regarding the regions where a class “D” distributor can sell.
There are two types of distributor licenses: "D", which I have, and "ID", which my suppliers have. Currently, an "ID" has the right to certain brands in certain counties. Any "D" in those counties must buy those brands from the designated "ID". As a "D" I carry all brands and can sell anywhere in the state.
The new provision restricts where a “D” can sell, effectively creating a state sponsored monopoly. If a business wants to buy certain brands, they are forced to go to a specific supplier. This allows the supplier great leeway in how they can treat their customers, since they would be the only provider.
Cascario’s Beverage is located in Northampton County, but is very close to Monroe County. Our “ID” suppliers’ geographical area ends at Northampton County. We have built our business for the past 70 years delivering to businesses in both counties. Our business is based on superior customer service.
Our customers in Monroe County are aware that I cannot match the prices of their regional “ID”s, yet still choose to do business with me. Some of the reasons they choose me are:
· Some accounts get regularly form the "ID"s but they use me as a fill in delivery to make it through weekends, since I deliver every day (but Sunday) while the “ID” suppliers will not. It is very hard to overstock for a busy period when beer needs to be paid on delivery, as there is no credit in the alcohol business.
· I do not have a minimum delivery requirement, or a delivery charge
· Some accounts chose me because of poor treatment by their regional “ID” in the past. This includes needing to supervise the drivers during the deliveries, being forced to buy unwanted products, and being denied promotional point of sale items (banners, coasters, glassware, etc…)
However, most of my customers choose me because they have been doing business with Cascario’s since my grandfather and great grandfather started this business 70 years ago, and see no reason to do otherwise. My customers would need to establish a relationship with 2-3 additional suppliers to receive the full line of products that I can currently sell them. As written HB1196 puts undue hardship on small businesses beyond just beer distributors.
The MBDA said this change was to close a loophole: to prevent a large corporation like Sheetz from buying a single "D" license and using that to sell to all of their locations, cutting out the regional "D"s and "ID"s. However, the wording in the bill hurts current licensees. It can be remedied perhaps with:
Any "D" license cannot sell outside of the geographical area controlled by their supplying "ID" if the business the "D" is selling to be owned by the same company or is a subsidiary of the "D".
Any "D" license cannot sell outside of the geographical area controlled by their supplying "ID" unless the “D” has established a continuing business relationship with licensees in that area prior to the introduction of this bill (I.e. Grandfather in the affected “D”s).
Unlike most class “D” beer distributors, my business is 75% wholesale and 25% retail. Almost half of my accounts are in Monroe County. If I can’t continue to deliver to them, I will lose half of my sales. I do not think Cascario’s can survive that drastic a reduction of business. It’s one thing to lose business due to poor business practices, which is ironically one of the reasons I have so many accounts in Monroe County. It is another situation entirely to lose business through no fault of mine, but because legislators didn’t fully understand the logistics of this situation. This bill requires a small fix that will save several small businesses and preserve a free and open market.
If you would feel so inclined, please contact your local legislator and the Governor and voice you opinions of this bill to them.
Thank-You for your continued support and patronage,
Governor Tom Wolf
Office of the Governor
508 Main Capitol Building
Harrisburg, PA 17120
2 N Main Street
Pittston, PA 18640
Senator Mario Scavello
2989 Route 611
Tannersville, PA 18372
FAX: (570) 620-4379
FAX: (717) 772-3695
Senator John Blake
409 Lackawanna Ave.
Scranton, PA 18503
(877) 346-5721 Toll Free
FAX: (570) 207-2897
FAX: (717) 783-5198
Representative Rosemary M. Brown
143 Seven Bridge Road
East Stroudsburg, PA 18301
Fax: (570) 420-8304
Representative Jack Rader Jr.
2785 Route 115
Carriage House Square
Effort, PA 18330
Fax: (570) 620-4349
Representative David Parker
411 Main Street
Stroudsburg, PA 18360
Fax: (570) 420-2944
Oktoberfest & Pumpkin Beers now in stock!
12 Packs Now Available!
We can now sell select 8, 9, 10, & 12 pack cases.
Not Your Father's & Coney Island Hard Sodas are in Stock
Founders Breakfast Stout- $52.99 while supplies last, regularly $67.29
We have a few of the best beers in the world in stock:
Samuel Adams Infinium- 25.4oz Bottles- $205.95
Dogfish Head World Wide Stout- 12oz Bottles- $146.85
Dogfish Head 120 Minute IPA- 12oz Bottles- $167.91
Samuel Smith Yorkshire Stingo- 18.7oz Bottles- $220.00
Founder Kentucky Breakfast Stout- 12oz Bottles- $104.95
Orval- 12oz Bottles- $94.85
Tripel Karmeliet- 12oz Bottles- $90.95
Get them now, they might not be around again.
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